Aust shares higher as trade worries ease

Australian shares have ended higher on Tuesday, following on from a record close on Wall Street and hopes of reduced global trade tensions.

The benchmark S&P/ASX200 ended the day 35.8 points, or 0.57 per cent, higher at 6,304.7 points, while the broader All Ordinaries index was 32.4 points, or 0.51 per cent, higher at 6,413.5 points.

Australian stocks showed broad strength, with solid gains in the materials sector after the US and Mexico moved closer to a trade agreement that could result in new direction for the troubled North American Free Trade Agreement (NAFTA).

The US dollar remained near one-month lows against the euro on Tuesday but gained against the yen after the US-Mexico deal aimed at overhauling NAFTA boosted appetite for riskier assets.

BHP closed 0.9 per cent higher at $33.38 and Rio Tinto added almost one per cent to close at $73.48.

The Australian dollar gained ground and at 1700 AEST was buying 73.45 US cents, up from 73.13 US cents on Monday.

In companies news, with the local reporting season in its final week, Blackmores shares closed 11.5 per cent higher at $162.00 after the vitamin maker reported a 19 per cent lift in full-year profit.

The company, reporting its first full-year results since chief executive Christine Holgate left to take charge of Australia Post, said net profit rose to $70 million on the back of strong demand from Asia and improved cost efficiencies.

Specialty Fashion Group reaffirmed its intention to start paying dividends in the coming year after trimming its full-year loss by 22.4 per cent to $6.97 million.

The retailer's shares lifted 18.6 per cent to $1.15.

Telcos were the only weak point on the Australian market as falls for TPG Telecom and Telstra weighed on the sector, while consumer discretionary stocks were flat.

Oil prices dipped on Tuesday, weighed down by gradually rising output from producer club OPEC but supported by supply risks from places such as Venezuela, Africa and Iran.

Energy stocks held their ground, with Woodside Petroleum up 1.8 per cent to $37.00.